AREC Rules and Regulations Flashcards
7 cards from real Arkansas Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 AREC Rules and Regulations flashcards as text
A broker's trust account is examined by AREC investigators and found to be short by $500. The broker claims it was a bookkeeping error. Under AREC rules, this is:
Answer: A violation regardless of intent
Trust account shortages are violations regardless of intent because AREC holds licensees to a strict liability standard for client funds.
Under AREC regulations, advertising by a salesperson must:
Answer: Clearly identify the supervising broker's name
All advertising by a salesperson must clearly identify the broker under whom they are licensed to prevent consumer confusion.
When a property is listed as 'exclusive right to sell,' which party is entitled to a commission if the owner finds a buyer independently?
Answer: The listing broker is still entitled to a commission
Under an exclusive right to sell listing, the broker earns a commission regardless of who procures the buyer, including the seller.
AREC can take disciplinary action against a licensee for conduct that occurred:
Answer: Both inside and outside Arkansas if it relates to real estate practice
AREC's disciplinary authority extends to conduct related to real estate practice even if it occurred in another state.
Which of the following is a duty a buyer's agent owes exclusively to their client under AREC's agency framework?
Answer: Loyalty to the buyer's interests
Loyalty — placing the client's interests above all others including the agent's own — is a fiduciary duty owed exclusively to the represented client.
Under AREC rules, a licensee acting as a dual agent must:
Answer: Obtain informed written consent from both parties
Dual agency is permissible in Arkansas only with the informed written consent of both the buyer and seller.
A licensee fails to renew their license by the expiration date. Under AREC rules, they may:
Answer: Not practice until the license is renewed and any penalties are paid
Practicing with an expired license is prohibited; the licensee must complete renewal and pay applicable late fees before resuming practice.